The cryptocurrency community is buzzing once again as Ethereum-based memecoin Shiba Inu (SHIB) sees a massive whale accumulation. This accumulation has left many speculating about the reasons behind it. Recent data from crypto analytics firm Lookonchain reveals that new buyers are stacking Shiba Inu on Binance and Gate.io, raising eyebrows among investors.
According to Lookonchain, over 1.44 trillion SHIB, valued at approximately $13.36 million, has left exchanges in less than 48 hours. The accumulated SHIB was split into multiple purchases over time, indicating a deliberate strategy. The unknown whale address 0xF633Cd….3493Bbac initiated the accumulation on the Binance platform, moving a staggering 400 billion SHIB tokens from the exchange to the wallet address. An hour later, the whale received an additional 146,342,102,182.77 SHIB. The total amount of SHIB withdrawn from Binance sums up to 546,342,102,182.77, worth approximately $5.18 million.
A massive Shiba Inu withdrawal was also observed on the crypto exchange Gate.io. Lookonchain reported that the whale started accumulating from Gate.io with an initial batch of 32,913,563,627.61 SHIB tokens. The largest accumulation consisted of 499,999,665,444.45 SHIB, followed by an additional 362,134,360,200.61 SHIB purchase. The total amount of SHIB amassed by this whale skyrocketed to a staggering 895,047,589,272.67, with a value of about $8.5 million. Interestingly, the same wallet address 0xF633Cd….3493Bbac is responsible for the tokens withdrawn from both Binance and Gate.io.
These whale accumulation transactions occurred at a time when the price of Shiba Inu was experiencing a rebound. However, there is no concrete evidence to support the claim that these transactions have positively affected the price of SHIB. It is unclear whether these actions will ignite a further upward trend or fizzle out over time.
While the whale accumulation caught the attention of the crypto community, Shibarium, the Shiba Inu layer 2 blockchain platform, has been experiencing a significant decline in its transaction counts. This downward trend suggests a shift in user confidence and engagement. As per data from Shibariumscan, the network’s daily transactions currently stand at 2.73 million, which is the lowest it has been in months.
The network has been observing a gradual decrease in transaction counts since the end of last year, indicating a decline in its adoption. Additionally, data from Shibarium Explorer shows that the network utilization has dropped by 11%. However, it is important to note that this is a decrease from the 30% network utilization recorded on Monday, January 8.
At the time of writing, SHIB was trading at $0.000009522, reflecting a 1.20% increase in the past 24 hours. Moreover, the 24-hour trading volume is currently witnessing a significant increase of 64%, according to CoinMarketCap. The market performance and volatility of Shiba Inu may be influenced by a variety of factors, including the whale accumulation and overall market sentiment.
The recent whale accumulation of Shiba Inu has sparked curiosity and speculation within the crypto community. Despite the impressive numbers and market reactions, the exact motivations behind these substantial transactions remain unknown. Additionally, Shibarium’s declining transaction counts indicate a potential decline in user confidence and engagement, raising questions about the project’s future. As with any investment, it is crucial to conduct thorough research and exercise caution. The cryptocurrency market is highly volatile, and its risks should be carefully evaluated before making any investment decisions.
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